Memecoins
Elon Musk’s GROK plummets by 70%, here’s why
Posted:
| Last updated: November 28th, 2023
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- GROK nosedived from its all-time high of $0.027 to a low of $0.007 within five hours.
- The GROK development team sent approximately $1.7 million worth of the token to a burn address.
In a swift turn of events, the meme coin linked to Elon Musk’s AI project, Grok [GROK], experienced a staggering 70% plummet in value following allegations by blockchain investigator ZachXBT.
On the 13th of November, ZachXBT disclosed on X (formerly Twitter) that GROK’s social media accounts and websites were repurposed from previous projects, notably an abandoned meme coin named ANDY.
ZachXBT substantiated his claims with screenshots, revealing the apparent recycling of assets from the defunct ANDY project.
Not that people in this space will care but @GROKERC20 $GROK was created by a scammer.
Same exact X/Twitter account has been reused for at least one other scam.
X/Twitter ID: 1690060301465714692 pic.twitter.com/iKu7zb6YeS
— ZachXBT (@zachxbt) November 13, 2023
This revelation triggered a cascade of events, causing GROK to nosedive from $0.027 to a low of $0.007 within five hours. The community anxiously observed the drastic decline, and GROK’s value settled at $0.012 at press time, according to TradingView.
Source: GROK/USDT, TradingView.
How did Grok’s team respond?
Responding to the crisis, Grok’s development team initiated a bold move by sending approximately $1.7 million worth of the token to a burn address. This was shown in an Etherscan transaction highlighted by ZachXBT.
This strategic token burn aimed to reduce the supply and instill confidence among shaken investors. The burn transaction involved a staggering 90 million GROK tokens, a significant effort to salvage the token’s credibility.
On the 14th of November, Grok’s official account on X (formerly Twitter) declared that they had incinerated the entire supply from the deployer address, amounting to 180 million GROK and valued at around $2 million.
all tokens from the deployer wallet has been 100% burnt.https://t.co/mNr48MoFry
https://t.co/VSERX5v9qLGROK GROK
— GROK (@GROKERC20) November 13, 2023
At its zenith, GROK boasted a peak price of $0.027. This propelled its market capitalization to nearly $200 million. The meme coin’s meteoric rise commenced on the 5th of November, coinciding with Elon Musk’s unveiling of Grok AI, his purported rival to OpenAI’s ChatGPT.
The ensuing week witnessed a staggering surge of 33,650% in GROK’s value. Meme coin traders, driven by the fervor surrounding Musk’s AI venture, had fueled this initiative.
Elon Musk’s AI project faces turbulence
Though still in its developmental phase, Grok boasts unique features that differentiate it from its contemporaries. Notably, it is touted to be more efficient than ChatGPT. It has an added capability to access real-time information from various sources.
As an extensive language model (LLM), Grok is currently accessible to a select user group. Plans are in place for a broader public release in the near future.
Grok’s versatility also allows it to find applications across various domains and industries. From assisting with inquiries to providing real-time updates and offering humor, Grok caters to educational, informational, entertainment, and customer support contexts, among others.
